AMD settles for two disties after Almasa split

AMD has dropped Almasa from its regional distribution line-up following a routine review of its relationship with the company.

The move spells the end of a four-year partnership between the pair and means AMD will now serve the Middle East channel through its two remaining distributors: Asbis and Avnet.

The news was confirmed by AMD's regional channel sales manager, Rami Al Saleh, who said: "AMD has always had a strategy of reviewing distributors and partners, and we either keep them in or out. This is an ongoing strategy and we take decisions based on those reviews."

It is understood that AMD had lowered its exposure to Almasa in recent months, which in theory should make it easier for the vendor to wind down the agreement and manage the transfer of any remaining inventory.

Al Saleh denied that the move to cut the number of Middle East distribution partners was linked to reduced market appetite for its products, pointing out that it saw a 30% sequential increase in business during the fourth quarter.

He added that the new set-up would hand AMD greater control of the market and have a positive effect on its existing distributors' profitability.

AMD has no plans to appoint a replacement for Almasa, but revealed it is on the hunt for a distributor that can help it develop the North African market.

"We are of course going to check with our current distributors to see if they are willing to invest in North Africa by having stock or people there, but if they have no interest to invest then we will go and find a distributor specifically for that region," said Al Saleh.

Almasa declined to comment on the AMD situation, but with the split following so soon after recent tie-ups with Belkin and WatchGuard, it seems the past month has been a case of ‘you win some, you lose some' for the Dubai-based IT distributor.